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  • We create chemistry for a sustainable future

    Ingo RoseDirectorInvestor Relations

    Roadshow Northwest

    May 10-11, 2017

  • BASF Capital Market Story, May 2017 2

    Cautionary note regarding forward-looking statements

    This presentation contains forward-looking statements. These forward-looking statements are basedon current estimates and projections of the Board of Executive Directors and on currently availableinformation. These forward-looking statements are not guarantees of the future developments andresults outlined therein. Rather, they depend on a number of factors, involve various risks anduncertainties, and are based on assumptions that may not prove to be accurate. Such risk factorsparticularly include those discussed on pages 111 to 118 of the BASF Report 2016. The BASFReport is available online at basf.com/report. BASF does not assume any obligation to update theforward-looking statements contained in this presentation.

  • BASF Capital Market Story, May 2017 3

    Agenda

    At a glance1

    Strategic levers2

    Segments3

  • BASF Capital Market Story, May 2017 4

    Growth above chemical industry average driven by innovative and sustainable products and solutions

    Unique Verbund concept competitive advantage based on integrated sites, operational excellence and best-in-class technologies

    Broad and resilient portfolio with global market access and strong customer relationships

    Earnings growth and strong cash flow generation based on operational and financialstrength

    Long-term value creation with progressive dividend policy grow or at least maintain dividend at the previous years level

    BASF shares an attractive investment

  • BASF Capital Market Story, May 2017 5

    Chemicals a growth industryGlobal annual growth rate of ~3.6%*

    more food needed by 2050

    more primary energy consumption by 2050

    of the world population will live in cities by 2050

    Agriculture Health & Nutrition

    Energy & Resources

    Automotive &Transport

    Construction &Housing

    Consumer products

    people by 2050

    Electric & Electronics

    Chemistry as enabler to meet current and future needs70% 50%~10 bn 30%

    * Forecast average annual real change 2017-2019; BASF Report 2016, p.121

  • BASF Capital Market Story, May 2017 6

    Broad and resilient portfolio2016: Sales of 57.6 billion; EBITDA of 10.5 billion

    Percentage of sales 2016*

    * Not depicted here: Other 3% of Group sales and EBITDA (1.0) billion

  • BASF Capital Market Story, May 2017 7

    Global market access through regional presence

    Kuantan

    Hong KongNanjing

    Freeport

    Florham Park

    Geismar

    LudwigshafenAntwerp

    So Paulo

    Regional centersSelected sitesVerbund sitesSelected research and development sites

    Asia Pacific

    Europe

    South America

    North AmericaSales 14,042 millionEBIT 1,113 millionEmployees 17,583

    Sales 26,039 millionEBIT 3,632 millionEmployees 70,784

    Sales 12,165 millionEBIT 1,098 millionEmployees 18,156

    Sales 5,304 millionEBIT 432 millionEmployees 7,307

    2016: Sales by location of customer; EBIT by location of company

  • BASF Capital Market Story, May 2017 8

    Verbund unique competitive advantageActively managed in line with market requirements

    Annual cost savings of more than 1 billion through integrated production Verbund concept supports sustainability, reduces waste and avoids CO2 emissions of 6 million tons p.a.

    Energy savings >300 million p.a.

    People, Customers, Technology, Production

  • BASF Capital Market Story, May 2017 9

    BASF Group Q1 2017Sales and earnings considerably above prior-year quarter

    Financial figures Q1 2017 Q1 2016 Change

    Sales 16.9 billion 14.2 billion 19%

    EBITDA 3.5 billion 2.8 billion 25%

    EBIT before special items 2.5 billion 1.9 billion 29%

    EBIT 2.5 billion 1.9 billion 31%

    Net income 1.7 billion 1.4 billion 23%

    Reported EPS 1.86 1.51 23%

    Adjusted EPS 1.97 1.64 20%

    Operating cash flow 833 million 1,046 million (20)%

    Sales development Volumes Prices Portfolio CurrenciesQ1 2017 vs. Q1 2016 8% 8% 1% 2%

  • BASF Capital Market Story, May 2017 10

    Stepwise increase of earnings levelEBIT and EBITDA*billion , 2001 - 2016

    3.7

    4.7 4.6

    7.0 7.28.4

    8.9

    7.76.5

    9.9

    11.2

    10.010.4

    11.0 10.6 10.5

    0

    2

    4

    6

    8

    10

    12

    2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

    EBIT EBITDA

    0.7

    2.2 2.2

    4.5 4.85.5

    6.0

    4.6

    2.8

    6.7

    8.06.7 7.2

    7.6

    6.2 6.3

    CAGREBITDA

    7%CAGREBIT16%

    * 2010, 2011 indicative, adjusted for IFRS 10 & 11; 2001 2009 as reported, without non-compensable foreign income taxes on oil production

    Avg. EBITDA level in depicted years

  • BASF Capital Market Story, May 2017 11

    billion , 2001 - 2016

    2.3 2.3

    4.9 4.65.3

    5.9 5.85.0

    5.76.5

    7.16.6

    8.1

    7.0

    9.4

    7.7

    0

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

    Free cash flowOperating cash flow

    -0.5 -0.1

    2.8 2.63.3 3.5 3.2

    2.53.2

    3.9 3.7

    2.63.2

    1.7

    3.6 3.6

    6.3%

    Strong cash flow development

  • BASF Capital Market Story, May 2017 12

    Attractive dividendWe want to grow or at least maintain dividend at the previous years level

    * Dividend yield based on share price at year-end

    Dividend per share

    0.65 0.70 0.700.85

    1.00

    1.50

    1.95 1.951.70

    2.20

    2.50 2.602.70 2.80

    2.90

    0

    1

    2

    3

    2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

    Yield* 3.1% 3.9% 3.1% 3.2% 3.1% 4.1% 3.8% 7.0% 3.9% 3.7% 4.6% 3.7% 3.5% 4.0% 4.1% 3.4%

    Proposal:

    3.00

  • BASF Capital Market Story, May 2017 13

    Delivering consistent, long-term valueCurrent market capitalization: 82 billion*

    Average annual performance (with dividends reinvested)

    0 2 4 6 8 10 12 14

    Euro Stoxx 50

    DAX 30

    MSCI World Chemicals

    +5.3%

    BASF

    +6.9%

    +1.0%

    +11.7%

    Last 10 years May 2007 April 2017

    0 2 4 6 8 10 12 14

    Last 5 years May 2012 April 2017

    +11.4%

    +12.2%

    +13.0%

    +10.7%

    * As of April 28, 2017

  • BASF Capital Market Story, May 2017 14

    Sales growth slightly faster than global chemical production

    Deliver attractive returns earn a significant premium on cost of capital

    EBITDA growth well above global chemical production

    Remain a strong cash provider continuously generate high levels of free cash flow

    Progressive dividend policy grow or at least maintain dividend at previous years level

    Financial targets for the coming years

  • BASF Capital Market Story, May 2017 15

    Innovations for a sustainable future

    Investments in organic growth

    M&A opportunities and portfolio pruning measures

    Our priorities

    Cost discipline and operational excellence

    We aim to grow sales and earnings faster than global chemical productionin the coming years, driven by

  • BASF Capital Market Story, May 2017 16

    Assumptions 2017

    Outlook 2017 for BASF Group confirmed

    Outlook 2017 We expect BASF Group sales to grow considerably in the 2017 business year.

    We want to slightly raise EBIT before special items compared with 2016.

    BASF Group EBIT is also expected to grow slightly in 2017.

    We are likely to once again earn a significant premium on our cost of capital in 2017.

    GDP growth: +2.3%Growth in industrial production: +2.3%Growth in chemical production* +3.4%Exchange rate: US$1.05 per euroOil price (Brent): US$55 per barrel

    * Excluding pharma

  • BASF Capital Market Story, May 2017 17

    Agenda

    At a glance1

    Strategic levers2

    Segments3

    Portfolio development Investments Innovation Sustainability Operational excellence

  • BASF Capital Market Story, May 2017 18

    Continuous global portfolio development

    target(in % of sales*)~50% ~50%

    Maintaining a balanced portfolio

    Divestment of businesses,e.g., due to loss of differentiation

    Divestment of businesses,

    e.g., due to lower market attractiveness

    Commoditization leads to restructuring

    Growth fields

    Innovation pipeline

    Acquisitions

    Specialties and solutions Differentiated commodities

    Attractive markets Differentiation by process

    technologies and integration

    Attractive markets Differentiation by customer

    proximity and innovations

    * Excluding Oil & Gas sales

  • BASF Capital Market Story, May 2017 19

    Portfolio development towards more market-driven and innovative businesses

    Strong Partnerships Gazprom PETRONAS Sinopec Total

    Selected transactions 2010 today

    BASFcore business

    ~5.4 billion salesin emerging and innovation-driven businesses

    Acquisitions Functional crop care Personal care & food Omega-3 fatty acids Enzymes Battery materials Specialty plastics Selected assets in Oil & Gas Refinish coatings Surface treatment

    Divestitures

    ~20.7 billion salesin businesses with limited fit and differentiation potential

    Styrenics Fertilizers Selected assets in Oil & Gas Natural gas